Approach sounds well-planned, especially given the potential volatility tied to the US election results. Events like these often lead to swift and significant market reactions, creating both risk and opportunity. By targeting undervalued international assets, you could effectively leverage a "buy-the-dip" strategy, capitalizing on investor overreactions and market corrections. Here are a few considerations to refine your strategy:
1. Stay Updated on Election News and Economic Data: Election results alone may not drive market reactions; other factors, such as economic indicators, Fed policy statements, and geopolitical developments, could also play a role. Staying informed will allow you to adapt your timing and tactics as needed.
2. Use Stop-Loss Orders to Manage Risk: Markets may not rebound as quickly or predictably as anticipated. Protecting your capital with stop-loss orders could be valuable, ensuring any downturns beyond your threshold don’t impact you significantly.
3. Focus on Liquid, Resilient Assets: In times of volatility, liquidity is key. Stocks or ETFs with strong trading volumes can help ensure you can enter and exit positions efficiently, avoiding excessive slippage.
4. Be Mindful of Foreign Exchange Rates: If you’re investing internationally, keep in mind that currency fluctuations could impact your returns. Hedging strategies or focusing on assets that are less affected by currency swings might add stability to your portfolio.
5. Prepare for a Gradual Recovery: While swift rebounds are possible, the recovery timeline may vary. A gradual recovery strategy, with possible profit-taking at certain milestones, can be a prudent way to realize gains without waiting too long for a peak.
If you time it right, this "buy-the-dip and sell-the-peak" approach could indeed yield impressive returns. Staying flexible and closely monitoring market developments will be essential to capitalizing on this opportunity. Good luck!
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